Carestream Dental recently locked in last-minute financing from direct lender General Atlantic Credit to help address its $489mn first-lien term loan that came due September 1, 2024, sources tell LFI. Under the $525mn new-money deal, the dental imaging company was also able to push out the September 2024 maturity on its now downsized $75mn revolver by about three years, they added.
The lender provided the issuer with a new $400mn (S+625) term loan due 2030, along with $125mn in convertible notes, with sponsor Clayton Dubilier & Rice taking part in the converts. The company wrapped up its recapitalization on Friday, just before most of its debt stack was set to mature, sources said.
Second-lien debt holders have taken over the company, converting their debt to equity, with Canyon Partners emerging as one of the new owners, sources added. CD&R retained some residual equity in the transaction, they said.
Carestream’s second-lien term loan was last quoted 15-22 on Friday, according to Markit. The loan was previously quoted at pennies on the dollar since January. The first-lien term loan was quoted 95.5-99.5 leading up to Friday’s deal.
The company’s adviser, Jefferies, was in talks with multiple direct lenders for capital in recent months, with a shortlist circulating among creditors in August, sources added.
Lenders advised by Davis Polk and Guggenheim signed nondisclosure agreements with the company earlier this year to negotiate balance sheet solutions, LFI previously reported.
Representatives for the company and Canyon Partners did not return immediate requests for comment. General Atlantic and CD&R declined to comment.
Veronica Graff
veronica.graff@levfininsights.com
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